I had a long day today (seminar this morning, lunch meeting then 6 hours on the road). I had a chance talk with several people on the phone during my drive regarding CMS’s Interim Final rule which revolves around broker/independent agent’s commissions.
Thanks to “Jack” for the link to the rule, here it is: http://federalregister.gov/OFRUpload/OFRData/2008-27041_PI.pdf.
If you go to page 17, you’ll see that Health Plans have two options. In short, I can’t see how a health plan will be able to pay more than $200/year for 5 years for replacement in 2009.
There seems to be no appreciation for the fact that the independent agent is the only source (save the Medicare Plan Finder for the 0.1% of Medicare Beneficiaries with the technical background to operate the website and understanding of risk, etc., to evaluate plans) for the Medicare Beneficiary to have a professional review their situation and evaluate, doctor and hospital networks, formularies and drug co-pays, plan premiums, plan benefits, value added benefits, etc., to make an educated recommendation.
There also seems to be no appreciation for the time the independent agent spends with their client resolving issues with the plan.
It’s been a long day and I’m tired, I’ll blog more later, just felt compelled to share the bad news. . .I’ll fill in more of the blanks tomorrow . . .
http://www.aishealth.com/ManagedCare/CompanyIntel/
ExecComp.html
Follow this lead to see what the CEO’s of these MA companies are making. They are the same one’s (Human and United Health) who were outraged at the commissions that other companies were paying.
Humana wants to force independent agents out of the MA marketplace.
This is very disappointing, but most of us have invested too much in this business to just pack our bags and leave town. This would simply give the lobyists thier way. NO.
Each of us should contribute in some way to turn back the tide. There has to be a major news show or paper that would love this story and really spread the truth. Not to mention the ability to get print in smaller circulation media. And it just does not seem possible in this day and age for a lynching of this massive proportion without breaking a constitutional law or labor law. Would Walmart really want to be associated with a RX plan that has higher premiums and copayments then competitors. Stunned, but we really need to regroup. I personally am going to fulfill my personal commitments to my policyholders and give them 100% of the best there is. RX plans, I do not have much time for this, but do offer my Humana members the First Health Part D information in the Medicare and You Booklet. But, does it seem a little underhanded that Coventry offers it’s agents higher premium and co-payments than direct marketed plans? Not everyone types easily or has time to reread for typos and misspellings, so let’s leave the criticism and scarcasm off each other.
I’ve had it with all this medicare bull. I’ve had fun and enjoyed this market for about ten years but it’s over now. I can’t afford it !!!!!!!!!!!!!!!!!!!!!!!!
“Democrats really suck. This would not have happened if you did not have a bunch of freaks running congress and the senate. Wait until hussein gets in office, then we won’t have to work anymore, he’ll pay us to not work.”
The fun has just begun.
Dems HATE MA plans, and they DESPISE PFFS.
Don’t be surprised if MA ceases to exist for 2010.
I agree with Brenda Jo. We never know what kind of plan designs we are going to get each year or how much they will be. Isn’t it logical that our medicare customers would expect continuity in benefit design at least? It would appear that CMS is trying to have the broker’s comp as a “fixed expense” because we all know we sure can’t have the provider community fix theirs.
We also never know if providers will continue to participate with the incumbent MA plan (PPO or HMO). For instance, with the Coventry Advantra plans for 2009, Wellspan is a player for the exception of one provider who I see as quite important to the health care of my customers. This will affect the decision making process my current customers enrolled with Coventry will have; this in addition to increased out of pocket expense on the plan will be reason to look at other plans. This is our job; it is what our medicare customers expect.
Not trying to be mean, but is Pream’s comment for real?
“which hunt?” Seriously?
“go after those brookers who brooke the law” actually made me laugh out loud.
If this is for real and you really are this bad at spelling/grammar (maybe English is your second language?), then I’m sorry. I’m not trying to make fun of you; I’ve just never seen anything like this before.
what about ma clients we wrote last year through companies like advantra. Will we be paid the new 50% on those clients or the 60 dollars the contract had in it last year. Many of us have many clients we have enrolled in years past that recieve a lower renewal then this new 50% rule. In 2009 will we get the higher amount if these clients stay with their existing ma carrier????
It’s brokers, not brookers.
It’s money, not monie. Sorry just thought you should know.
i am shock at what is going on to our mapd bueness .with such a deffensilent from a hip or no organization that will stand up for the independent brookers and say to that scume congress man pete stark and who ever backhim up on his jihad for independent brooker,,,,to stop yhis which hunt /however go after those brookers who brooke the law dont paint all ins brooker as bad people and punish us all
we as independent brookers need to start thinking of uniteing to form a body that would have our intrest at heart/this is opean season for the independent brookers ,here you got wall street on fire people loosing there homes /jobs etc you have dirth ball stark trying to take away milk from my 8 month old child /by telling me how much monie i can earn IF THIS IS NOT SOCIALISIAM THEN WHAT IS IT?
Here’s what this stupid law means for me
1) Concentrate on prospects new to MA, ignore those already on MA. Afer all, I only have 6 weeks to sell and I have spent the last two months getting ready while I make nothing. CMS is convinced thta people on MA plans can figure it out for themselves.
2) Think MedSupp/Part D.
3) Begin abandonement of clients in five years. I can’t work for zero.
Nice Job CMS and Rep. Stark !!!